Friday’s Trading Levels and Commentary
May 28th, 2010 Posted in Uncategorized"It is my belief that (Tuesday's) initial drop had more to do with the unwinding of margin positions related to options expiration more than it had to do with what was going on in Europe. If I'm right, we should continue moving higher the rest of the week and perhaps into next week before concern over a global financial meltdown rears its ugly head again." (Pivot for Profits 5/26/10)
So far so good. I don't think we've broken this down trend yet however I do feel we've made a short term bottom in equities that probably won't be revisited until September.
That being said, thanks to yesterday's closing action, many indicators that I use have turned and are now giving an initial buy signal for all stock index futures. The signal takes time to develop but is very reliable when read correctly. But nothing is a guarantee so use proper risk management.
Trading Levels
These big swings and trading ranges have been wrecking havoc on my calculations. You'll notice that the spread between the various levels have widened dramatically making it a little more difficult to maneuver intraday.
However, that's why I produce two set of numbers - daily and weekly. Together they help clear up some of the uncertainty.
Ideally, I'd like to see a modest retreat in equities within the first hour of trading. For ES M10 I'll be hoping to see 1089/1088 level and for TF M10 I'll be looking for 664/663 range.
As I write this, both ES M10 and TF M10 are trading at their weekly Pivots - 1103.00 (P - 1103.67) and 669.00 (P - 669.01). Assuming we get the scenario I detailed above, a move back to current levels should generate enough optimism to push these markets through their Weekly Pivots to a higher close. But again, play what the market's give you, not what you want them to give you.
If you have questions or comments, feel free to contact me via email at ruria@manducatrading.com or toll free at 866.312.4965.
Happy Trading and Have a Great Memorial Day Weekend!
Thanks to all the veterans and Go Hawks!
| Daily Pivots | 5/28/10 | ||||
| EQUITIES | R2 | R1 | PIVOT | S1 | S2 |
| ES M10 | 1099.42 | 1080.33 | 1070.42 | 1051.33 | 1041.42 |
| YM M10 | 10354.33 | 10293.67 | 10191.33 | 10130.67 | 10028.33 |
| NQ M10 | 1886.42 | 1874.58 | 1852.67 | 1840.83 | 1818.92 |
| TF M10 | 680.97 | 674.63 | 663.67 | 657.33 | 646.37 |
| ENERGIES | R2 | R1 | PIVOT | S1 | S2 |
| QM N10 | 75.93 | 75.24 | 73.98 | 73.29 | 72.03 |
| QG N10 | 4.40 | 4.35 | 4.25 | 4.20 | 4.11 |